The shares of Reliance Power Share Price Ltd (RPower) surged 18.66% on May 23, 2025, hitting an intraday high of ₹52.90 on the BSE, driven by heavy trading volumes and bullish investor sentiment. This rally marked a 16.39% year-to-date gain and positioned the Anil Ambani-led power company among the top performers in the renewable energy sector. Below, we unpack the factors behind this surge, analyze technical and financial metrics, and assess the stock’s future potential.
Why Did Reliance Power Share price Rally 19%?
- Landmark Solar Project with Bhutan
Reliance Power’s partnership with Bhutan’s Druk Holding and Investments (DHI) to develop a 500 MW solar power project under a ₹2,000 crore joint venture fueled investor optimism. The project, structured as a Build-Own-Operate (BOO) model, is Bhutan’s largest private-sector FDI in solar energy and aligns with India’s renewable energy expansion goals. RPower’s clean energy pipeline now stands at 2.5 GWp solar capacity and 2.5 GWh Battery Energy Storage Systems (BESS), reinforcing its leadership in integrated solar solutions. - Strong Q4 FY25 Financial Turnaround
The company reported a consolidated net profit of ₹126 crore in Q4 FY25, reversing a ₹397.56 crore loss in Q4 FY24. This turnaround was attributed to cost-cutting measures, with total expenses dropping to ₹1,998.49 crore from ₹2,615.15 crore year-on-year. - Technical Breakout and Sector Tailwinds
The stock breached key resistance levels, trading above its 5-day, 20-day, 50-day, and 200-day moving averages, signaling bullish momentum. Analysts noted a potential breakout above ₹53 could push prices toward ₹56 in the short term. Sector-wide optimism around India’s renewable energy targets and rising power demand further supported the rally.
Technical Analysis: Key Levels to Watch
- Support and Resistance: Immediate support lies at ₹48, while resistance is pegged at ₹53. A decisive close above ₹53 may trigger a rally toward ₹56.
- RSI Indicator: The 14-day Relative Strength Index (RSI) of 75.88 indicates overbought conditions, suggesting caution for short-term traders.
- Volume Surge: Over 356.9 million shares were traded on NSE and BSE combined, nearly 5x the 20-day average volume, reflecting heightened institutional interest.renewable energy investments
Financial Health and Valuation Metrics
| Metric | Value | Implication |
|---|---|---|
| Market Cap | ₹20,775 Cr | Mid-cap status with growth potential |
| P/E Ratio (TTM) | 7.33 | Lower than sector average of 27.44 |
| Debt-to-Equity Ratio | 0.93 | Better than industry median (1.46) |
| Promoter Holding | 24.98% | Increased stake in May 2025 quarter |
| Beta | 1.3 | High volatility vs. market |
Despite improved profitability, the stock’s TTM EPS of ₹7.13 and P/B ratio of 1.49 suggest moderate valuation risks.
Risks and Challenges
- Historical Underperformance: RPower shares have been “wealth destructors” historically, falling from ₹499 (2008) to ₹52 (2025).
- High Volatility: A beta of 1.3 implies amplified swings compared to the broader market.
- Overbought Signals: The RSI above 70 warns of potential short-term corrections.
Long-Term Price Targets (2025–2030)
Analysts project gradual growth, driven by renewable energy expansion and debt reduction:
- 2025: ₹32.90–₹38.50
- 2026: ₹41.10–₹46.70
- 2030: ₹72.40–₹77.15
Technical analysts like Anshul Jain (Lakshmishree Investments) highlight a bullish consolidation pattern, with a breakout above ₹48.5 potentially triggering a rally to ₹65. RPower stock analysis
Should You Invest in Reliance Power?
Bullish Factors:
- Leadership in solar and BESS segments.
- Strategic partnerships and government policy support.
- Improved profitability and cost management.
Bearish Factors:
- Past underperformance and high volatility.
- Overbought technical indicators.
Verdict: Suitable for high-risk investors with a 2–3 year horizon. Monitor ₹53 resistance and sector trends closely.
Key Takeaways
- Reliance Power’s 19% surge reflects optimism around its Bhutan solar project and Q4 turnaround.
- Technical indicators suggest short-term caution but long-term growth potential.
- The stock remains volatile, requiring careful risk assessment.
Disclaimer: This analysis is for informational purposes only. Consult a financial advisor before investing.
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